The Arizona Department of Revenue announced that the agency is now accepting electronically filed corporate and partnership income tax returns.[1] Arizona had been one of the few states, if not the only one, that could not accept electronically filed entity returns.
The news release on the website notes that while the program is voluntary for 2019 returns, beginning with 2020 returns these entities will be required to file return electronically. The statement provides:
Legislation signed into law in 2017 gives companies an e-file option in 2020 for tax year 2019 and becomes mandatory for corporations starting in 2021 for tax year 2020 returns.
Arizona Department of Revenue News Release – January 6, 2020
The 2017 legislation also initiated a multi-year phase-in period for businesses required to file and pay transaction privilege tax (TPT) electronically. In 2019, the e-filing threshold was $10,000 with 77 percent of the more than 2.1 million TPT returns filed electronically. For 2020, businesses with an annual transaction privilege tax and use tax liability of $5,000 or more during the prior calendar year, will be required to file and pay electronically. In 2021, the threshold is reduced to $500 or more during the prior calendar year.
[1] “Electronic Filing Now Available for Corporate Taxpayers in 2020,” Arizona Department of Revenue website, January 6, 2020, (https://azdor.gov/news-events-notices/news/electronic-filing-now-available-corporate-taxpayers-2020 Retrieved January 7, 2020)
Ed Zollars CPA's Blog 